Embodiments of the present invention provide methods and systems for executing a plurality of money transfers wherein at least one term of the money transfers is dependent on the value of a parameter that fluctuates from time to time, such as a currency exchange rate or a transaction service fee. A money-transfer system may be provided to execute the money transfers. The system may comprise one or more terminal devices adapted to input money transfer information from a customer and/or receive the transferred funds at a receiving destination, a host processor with associated memory adapted to process the money transfer and money transfer information, and a money-transfer network adapted to provide a communications interface between the terminal devices and the host processor. The host processor may be configured to perform steps comprising the method of the present invention.
In one embodiment of the invention, a method for executing a plurality of money transfers comprises receiving information from a customer at the money-transfer system to stage a first money transfer at least one term of which is dependent on the value of a fluctuating parameter, determining a first value for the fluctuating parameter at a first point in time, and executing a first money transfer using the first value of the parameter. A unique identifier that associates the first value of the fluctuating parameter with the customer (“lock-in value identifier”) may be stored in the host processor memory for future retrieval by the host processor. Subsequent to the first money transfer, a second money transfer may be staged by or on behalf of the same customer (“the same customer”), wherein the terms of the second money transfer are also dependent on the same fluctuating parameter. A second value of the fluctuating parameter may be determined at a second point in time, and the first value of the fluctuating parameter may be retrieved from the host processor memory using the lock-in value identifier.
In one embodiment, using the host processor, a determination may be made as to whether the first value or the second value of the fluctuating parameter is more favorable to the customer for executing the second money transfer. The second money transfer is then executed through the money transfer system using the more favorable value of the fluctuating parameter. The customer may make any number of subsequent money transfers using the process of the invention and be assured that the value of the fluctuating parameter used to execute each subsequent money transfer will be no less favorable than the value of the parameter used in the first money transfer. In some embodiments, the customer is notified of the amount of benefit realized by using the more favorable value of the fluctuating parameter to execute the second money transfer. Notification can occur at the time the money transfer is sent or at some later point in time (e.g., after the money has been received).
In another embodiment, information related to a money transfer may be received from a customer at the money system, wherein at least one of the terms of the money transfer is dependent on the value of a fluctuating parameter. A current value may be determined for the fluctuating parameter and a determination may be made as to whether or not the money transfer is a repeat transaction for the customer. If the money transfer is not a repeat transaction, a lock-in value identifier may be stored in the host processor's memory that designates the current value of the fluctuating parameter as the lock-in value of the fluctuating parameter for repeat transactions of the customer. If the money transfer is a repeat transaction of the customer, the lock-in value identifier is retrieved from the host processor's memory and a determination is made whether the lock-in value is more favorable than the current value. If the lock-in value is more favorable, the money transfer is executed using the lock-in value, whereas if the lock-in value is not more favorable, the current value is used. In some embodiments, the customer may be given the option of using the lock-in value of the fluctuating parameter for repeat transactions, without determining whether the lock-in value is more favorable than the current value.
In some embodiments, a unique “repeat customer identifier”, e.g. a customer's loyalty program identification number, may be used to identify a repeat or otherwise preferred returning customer. The information related to the money transfer provided by the customer may be searched for the repeat customer identifier to determine whether the money transfer is a repeat transaction of the customer. If the repeat customer identifier is not found, i.e. if the money transfer is not a repeat transaction, a repeat customer identifier may be stored in the host processor's memory in association with the lock-in value identifier to be used in subsequent money transfers. If the repeat customer identifier is found, i.e. the money transfer is a repeat transaction, the repeat customer identifier may be used to retrieve the lock-in value identifier from the host processor's memory.
In another embodiment, the information received from the customer in connection with the first money transfer may include the specification of an amount of money to be transferred, a first currency in which the funds are to be provided by the customer and a second currency in which the funds are to be received at the receiving destination. A first currency exchange rate between the first and second currency may be determined, the appropriate amount of funds may be collected from the customer in the first currency and the funds may be converted to the second currency based on the first exchange rate. In addition, a repeat customer identifier that identifies the customer as a repeat customer, and a lock-in exchange rate identifier that associates the first exchange rate with the repeat customer identifier may be stored in the host processor's memory. The converted funds may then be transferred to the receiving destination using the money transfer system.
Information related to a second money transfer, including the repeat customer identifier, may be received at the money transfer system from the customer for a second money transfer involving the first and second currencies, and a second currency exchange rate (“current exchange rate”) may be determined. The repeat customer identifier may be used to retrieve the associated lock-in exchange rate identifier from the host processor. The host processor may determine whether the first exchange rate represented by the lock-in exchange rate identifier or the current exchange rate is more favorable to the customer for executing the second money transfer, the appropriate amount of funds may be collected from the customer in the first currency and the funds may be converted to the second currency using the more favorable exchange rate. The converted funds may then be transferred to the receiving destination using the money transfer system. In one embodiment, the foreign exchange risk associated with the lock-in exchange rate may be hedged by the money-transfer service provider.
In another embodiment, a first amount of a service fee may be determined for executing a first money transaction having certain terms. A unique identifier may be stored in the host processor's memory that associates the first amount of service fee with the customer (“service fee lock-in value identifier”), as well as other terms of the first money transfer, if desired. The first service fee amount may be collected from the customer for executing the money transfer using the money transfer system. In subsequent money transfers having substantially the same terms, a second amount of service fee charged for the subsequent money transfer may be determined. The first amount charged for the service fee may be retrieved from the host processor's memory using the service fee lock-in value identifier. The host processor may then determine whether the first service fee amount or the second service fee amount is more favorable for the subsequent money transfer, and the more favorable service fee may be collected from the customer for executing the second money transfer. In other embodiments, a similar method may be used to provide a repeat customer with the more favorable currency spread for the subsequent money transfer, or a discount may be provided to a repeat customer based at least in part on the difference between a first currency spread associated with first money transfer and a second currency spread associated with the second money transfer.